Ethics in Materials Management

Back door selling

Back door selling is a pretty common occurrence
and can add significant costs to your organization
Backdoor selling is what happens when the
selling Account Executive doesnt get what he
wants through the normal selling process and
goes directly to someone else in your
organization and convinces them to commit to a
deal without the proper people involved and the
appropriate approvals
Have a centralized supplier approval process
in order for a company to supply products or
services to your organization they must be on the
approved supplier list. As a prerequisite for being
on this list the supplier must agree to your terms
and conditions. This includes recognizing who are
the approved signers for all supply agreements
and that any agreements signed by non-
authorized individuals will not be enforceable.
Communicate with all your employees
ensure that all employees are aware of the
policies and procedures that are in place and who
are authorized to sign contracts. Failure to follow
the rules should result in some sort of disciplinary
action such as baring the seller from doing future
business with your company. Make sure that the
end users understand the problems caused by
their actions and get them involved in the
negotiation process.

Communicate with suppliers make sure that
all suppliers know your purchasing policies as
well. Let them know that backdoor selling of any
kind will not be tolerated and if it is even
attempted that they will no longer be allowed to
sell to your company.